Sri Lanka Sees Significant Surge in Foreign Direct Investments Amid Stable Investment Climate—BOI
The Board of Investment (BOI) of Sri Lanka announced an increased inflow of Foreign Direct Investment (FDI) to the country in comparison to the previous year, consolidating the stable and investor-friendly economic environment.
The BOI highlighted that the renewed confidence of international investors has resulted in the receipt of new investment proposals given the government’s steadfast commitment to macroeconomic stability and the establishment of consistent policy frameworks to facilitate investments in Sri Lanka.
As of June 2025, the Board of Investment of Sri Lanka received 79 investment proposals, including 40 greenfield projects and 39 proposals for the expansion of existing Ventures. The total estimated value of these investments stands at US$ 4,669 million, with US$ 3,899 million accounted for as foreign investment and the remaining US$ 770 million as local investment. This reflects an 18% increase compared to the investment proposals received during the corresponding period in 2024.
The investment proposals span a wide range of sectors and originate from various countries across the globe. Notably, a rise in greenfield investments directed towards the Manufacturing sector including tyres and tracks for export, mineral processing and apparel related projects as well as Energy, Real estate including condominium and mixed-use developments, Hotel projects, and Agricultural-related ventures including dairy farming, seaweed and seafood processing, and crop cultivation. These investment proposals have originated from a diverse range of countries, including Canada, China, India, Singapore, Switzerland, the Czech Republic, Australia, Saudi Arabia, the Netherlands, South Korea, and several others.
A notable increase in interest was observed among existing ventures seeking to expand their operations securing US$ 322 Mn estimated Investment proposals out of US$ 4,669 Mn total Investment proposals. In particular, major players in the telecommunications sector have announced expansion plans in this year. Additionally, several enterprises involved in, information and communication technology (ICT), garment manufacturing, rubber products, port development and apartment complex construction have submitted applications for project expansions.
All investment proposals received by the BOI are subject to a comprehensive evaluation process, with approvals granted upon receiving clearance from the relevant line agencies. Accordingly, during the period from January to June 2025, the BOI has approved 48 projects — comprising 28 greenfield applications and 20 expansion projects — with a total investment value of US$ 499 million. This reflects a 28% increase compared to the corresponding period in the previous year. These approved investments are expected to generate approximately 10,000 employment opportunities upon commercialization.
The BOI also carries out data collection on realized Foreign Direct Investment (FDI) and local investment values. During the first quarter of 2025, realized FDI amounted to US$ 203 million, marking a significant 90% increase compared to US$ 107 million recorded in the first quarter of 2024. Of the total realized FDI during the period, 41% was directed towards the port development sector, followed by 34% into manufacturing, 20% into tourism and leisure, with the remaining share allocated to sectors such as ICT, agriculture, property development, and telecommunications
In addition, realized local investment during the same period reached US$ 87 million, reflecting a 32% increase from US$ 66 million in the first quarter of the previous year.
BOI enterprises make a significant contribution to the Sri Lankan economy through foreign fund inflows, local investments, export earnings, and employment generation. According to available data, BOI export-oriented enterprises recorded merchandize exports amounting to US$ 2,658 million during the period January to April 2025 — a 7% increase compared to US$ 2,392 million in the same period of 2024. This performance accounts for 59% of national merchandise exports and 73% of national industrial exports during the corresponding period.
Renewed investor confidence has significantly boosted interest in investing in Sri Lanka which is reflected in the number of inbound delegations hosted by the BOI during the year. Notably, in the first six months alone, the BOI hosted many delegations from countries including from Japan, Switzerland, the UK, India, China, Bangladesh, Korea, the UAE, the Netherlands, Bahrain, Thailand, Pakistan, and Vietnam, along with engagements resulting from the recent high-level visit to Germany.
These positive trends underscore the growing confidence in Sri Lanka as a competitive investment destination and reflect the pivotal role of the BOI in driving sustainable economic growth through strategic investment facilitation.